Your Mortgage News Source Instant Approval Credit Cards – Debt to Income Ratios Hurting Interest Rates

Many Americans will seek instant approval credit cards in 2010. Unfortunately a large percentage of these Americans will have bad debt to income ratios which will hurt their overall interest rate. You may not realize that your debt to income ratio is drastically increasing interest rates on your credit cards.
If you have a significant amount of debt and you are making very little money your debt to income ratio is likely to be bad. Credit card companies clearly see that you have a significant amount of debt while you are making very little money which causes them to increase the overall interest rates on your credit cards.
Credit card companies may not have direct access to your income or your total amount of debt but they can clearly see by the pattern of your payments how much money you are likely to be making. Unfortunately, when you are making the minimum payments they realized that you need a credit card more than they need you.
If you have seen your credit card interest rate increase over the last several months you might want to work hard to the decrease your debt to income ratio. If this ratio is above 50% then you need to take the necessary steps to reduce it to below this level.